Typical Barbershop Expenses

by Mark Applegate - Updated September 26, 2017

Barbershops are making a comeback. With budgets tight, men and women are looking for ways to cut expenses. Many are cutting their previously high salon expense in favor of the friendly, hometown barber. Opening a barbershop is relatively easy, but do not fail to consider the variety of expenses required to operate this type of business.

Start-up Expenses

You initial start-up expenses will vary by the size of your shop. You will first need to secure your required occupational and business licenses. In addition to the normal start-up costs with any storefront, such as your first month's rent, utility deposits, merchant's licenses, insurance start-up costs, point-of-sales system and other standard costs, you will have some industry specific costs. For every employed barber, you should have a barber chair and a reclining chair to wash hair at a sink. You will need a large quantity of towels, hair cutting capes, hampers to hold soiled towels. You will also need the standard array of hair-cutting tools, mirrors, razors and cleaning brushes. You will need cleaning and sterilizing solution to clean scissors and brushes with in a container at each station.

Fixed Recurring Expenses

There are fixed expenses with most businesses that require a storefront like a barbershop. Count on monthly rent, trash expense, telephone, utilities, local and state taxes on fixtures and workers' compensation and other payroll-related costs and taxes. Insurance on inventory and personal liability should be included as fixed expenses. Recurring marketing efforts such as phone book and local newspaper advertisements should be considered. You can get a good idea as to the average utility cost for a barbershop by calling the utility company. They will often have a database that estimates approximate usage in their district for a similar business.

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Other Operational Expenses

Once open, you will have a variety of operational expenses. In addition to payroll-related expenses, you may want to budget special marketing expenses. Plan on replacing razors and scissors on a fairly routine basis depending on the quality you purchase and your ability to sharpen them. You will certainly need a stock of shampoos and conditioners for use and for sale, as they are typically a high profit margin item. Keep a stock of cleaning supplies and tools such as mops, brooms, dustpans, vacuums and trash cans. Keep a reserve of cleaning solutions and soaps.

Other Expenses

You will need an "OPEN" sign and a hours of operation sign. Purchase a striped pole to hang at your storefront, historically symbolizing medical and bloodletting services from this profession, as a modern symbol of the business. Remember point-of-sales system expenses such as Internet service, credit card service fees and receipt paper.